Advanced Chip Packaging Market Report 2024

The advanced chip packaging market size has grown rapidly in recent years. It will grow from $10.51 billion in 2023 to $12.41 billion in 2024 at a compound annual growth rate (CAGR) of 18.1%. The growth observed during the historic period can be attributed to several factors such as the increasing demand for smaller, more powerful consumer electronics, the proliferation of mobile devices and smartphones, the expansion of high-speed data networks, the rising integration of electronics in the automotive sector, and the evolving requirements of computing technology.

The advanced chip packaging market size is expected to see rapid growth in the next few years. It will grow to $24.29 billion in 2028 at a compound annual growth rate (CAGR) of 18.3%. The anticipated growth during the forecast period is driven by several key factors such as the widespread adoption of 5G technology, the expansion of Internet of Things (IoT) devices, the increasing prevalence of artificial intelligence (AI) and machine learning, and the rise of wearable technology. Notable trends for the forecast period include the growing use of 3D packaging technologies, advancements in thermal management, progress in high-density interconnect technologies, expansion of fan-out wafer-level packaging technologies, and the development of flexible and stretchable packaging solutions.

The rising demand for consumer electronic devices is anticipated to drive the growth of the advanced chip packaging market. Consumer electronic devices, which are designed for everyday use in private homes, include smartphones, tablets, and laptops. The expansion of internet and wireless networks has significantly increased the demand for these devices. Advanced chip packaging technologies facilitate the integration of multiple functions into compact designs, which are essential for high-performance consumer electronics. These technologies improve processing power, efficiency, and heat dissipation, enabling the creation of feature-rich, compact devices. For instance, a report published by the Japan Electronics and Information Technology Industries Association in May 2023 indicated that consumer electronics production reached $209.5 million, representing a 127% increase compared to the previous year. Consequently, the growing demand for consumer electronic devices is fueling the expansion of the advanced chip packaging market.

Major players in the advanced chip packaging market are focusing on the development of chip-scale package (CSP) technology to enhance semiconductor device performance, miniaturization, and reliability. CSP technology involves packaging where the package dimensions are nearly the same as the semiconductor chip itself. In September 2022, Bridgelux Inc., a US-based LED innovation company, introduced its Chip Scale Package (CSP) LEDs, which range from 1800K to 6500K, with CRI values from 70 to 95, and offer RGB color to full spectrum. Utilizing flip-chip technology with a phosphor coating, these LEDs eliminate the need for bond wires and plastic molds, resulting in improved heat management and increased luminous flux production. The CSP2727 model boasts an industry-leading efficacy of 209 lm/W at 350 mA and 190 lm/W at 700 mA, making it well-suited for commercial lighting applications. The CSP LEDs facilitate smooth and flexible board assembly, allowing for the creation of customer-specific Chip-on-Board (COB) modules for various lighting applications including commercial, entertainment, industrial, and outdoor settings.

In November 2022, Lam Research Corporation, a US-based semiconductor company, acquired SEMSYSCO GmbH for an undisclosed amount. This acquisition expands Lam Research's capabilities in innovative packaging solutions, particularly for advanced logic chips and chipset-based systems. The acquisition includes a state-of-the-art research and development facility located in Austria, which enhances Lam Research's expertise in next-generation substrates and heterogeneous packaging. SEMSYSCO GmbH, an Austria-based provider of wet-processing semiconductor equipment, will contribute to Lam Research's advanced chip packaging efforts.

Major companies operating in the advanced chip packaging market are Samsung Electronics Co. Ltd., Advanced Micro Devices Inc., Advanced Semiconductor Engineering Inc, Henkel Group, Texas Instruments Incorporated, Lam Research Corporation, NXP Semiconductors, Onsemi, Amkor Technology, Nordson Corporation, Siliconware Precision Industries Co. Ltd., Kulicke and Soffa Industries Inc., ChipMOS Technologies Inc., SUSS MicroTec SE, EV Group, Indium Corporation, Palomar Technologies, Brewer Science Inc., MacDermid Alpha Electronics Solutions, Universal Instruments Corporation, CHIPBOND Technology Corporation.

Asia-Pacific was the largest region in the advanced chip packaging market in 2023. The regions covered in the advanced chip packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the advanced chip packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Advanced chip packaging refers to advanced processes and technologies used to encase and connect semiconductor devices (chips) to their external environments, commonly found within electronic devices. This method offers design flexibility, allowing for the creation of tailored solutions for specific applications and performance requirements.

The main types of advanced chip packaging include ball grid array (BGA), quad flat package (QFP), chip scale package (CSP), and wafer-level chip scale package (WLCSP). A ball grid array is an integrated circuit packaging type that employs an array of solder balls on the bottom of the package to provide electrical connections to the printed circuit board. This design facilitates higher pin counts, enhanced thermal performance, and more compact designs compared to traditional pin-based packages. Technologies such as five-dimensional (5D) packaging, three-dimensional (3D) packaging, fan-out wafer-level packaging, flip-chip packaging, and system-in-package solutions are utilized in various industries, including electronics, automotive, telecommunications, industrial, healthcare, aerospace, and defense.

The advanced chip packaging market research report is one of a series of new reports that provides advanced chip packaging market statistics, including the advanced chip packaging industry global market size, regional shares, competitors with the advanced chip packaging market share, detailed advanced chip packaging market segments, market trends, and opportunities, and any further data you may need to thrive in the advanced chip packaging industry. These advanced chip packaging market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The advanced chip packaging market consists of revenues earned by entities by providing services such as multi-chip modules, through-silicon vias, lead frame packages, and embedded die packaging. The market value includes the value of related goods sold by the service provider or included within the service offering. The advanced chip packaging market also includes sales of wire bonders, encapsulation equipment, die-attach equipment, and test and inspection equipment. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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